Mad Money’s Jim Cramer Advises $731M Powerball Jackpot Winner to Put 5% in Bitcoin
Mad Money host Jim Cramer has provided some investment advice aimed at the latest Powerball jackpot winner of $731.1 million. He recommends putting 5% of the jackpot in bitcoin alongside several other investments, such as gold and real estate.
Jim Cramer Says Put 5% of Powerball Jackpot in Bitcoin
Someone won a Powerball jackpot worth an estimated $731.1 million last week, which was one of the largest lottery prizes in U.S. history. The winning ticket was sold at Coney Market, a convenience store in Lonaconing, a town in Maryland. The store will get a $100,000 bonus for selling the ticket.
Jim Cramer, the host of Mad Money on CNBC, offered some advice to the lucky winner on Friday. The former hedge fund manager also co-founded the financial website Thestreet.com.
Cramer provided a list of investments he recommends for the jackpot winner. It consists of precious metals, real estate, art, bitcoin, municipal bonds, and dividend-paying stocks.
For the Powerball jackpot winner, Cramer said: “When you are super rich like this, your main worry is not the taxman. You’ve got to be worried about inflation, specifically hyperinflation, that’s the only thing that can really threaten the nine-digit fortune.”
He continued, “So what holds value during periods of hyperinflation?” Cramer revealed, “You may not know this but it’s precious metals, real estate, and great art.” The Mad Money host has long been a gold proponent. He advised, “As for gold, yes, 5% jackpot into bullion.” However, he also warned, “Don’t store the bullion at home, put it in safety deposit boxes.” Cramer added:
If you won the lottery, go ahead, yes, I am going to say it, 5% in bitcoin.
Cramer further suggested without going into any detail: “Don’t buy it all at once, crypto could be incredibly volatile. Don’t buy on the weekend. But it’s an important new storehold of value.”
Besides recommending investments, Cramer also provided some general advice for Powerball jackpot winners, such as to watch out for scammers and to collect their winnings as a lump sum rather than annuities. “Always take the lump sum. You can stick it in treasury bonds and the interest you will accrue will make you more than if you took the annuity,” the Mad Money host said.
Cramer himself began looking into investing in BTC due to concerns of massive inflation. In December, he revealed that he had bought some bitcoin but sold the cryptocurrency earlier this month. He said to treat BTC like a stock: “As I tell people … if you have a double, take a lot out … It’s just no different from a stock.”
What do you think about Jim Cramer’s bitcoin advice? Let us know in the comments section below.